This paper derives the mathematical expression for the minimum excitation capacitance of self excited induction generator under different types of load and speed, and also studies the performance of a self-excited induction generator (SEIG) driven by a prime mover. Mathematical model of the isolated SEIG under balanced loading conditions in d-q stationary reference frame is developed to study the behavior of the system. The developed mathematical model is validated by comparing simulation and experimental results at no load and for balanced load cases.